Peace hopes trigger robust PSX rally

Trading halted at the Pakistan Stock Exchange (PSX) on Wednesday in a massive show of strength as Middle East de-escalation hopes brought investors back into a vibrant mood. Equities surged sharply in broad-based buying across multiple sectors, which sent the KSE-100 index soaring by over 6,750 points. PSX, in its official notice, confirmed that the market halt was triggered after the KSE-30 index rose 5% from the previous day's close, activating the exchange's circuit breaker mechanism. Following this, all equity markets were suspended at 12:03 pm and all outstanding orders were automatically cancelled.

The KSE-100 initially climbed to 153,615, marking a gain of 3.28%, and by 12:03 pm, it was hovering around 156,205, up 7,462 points, or 5.02%. When trading resumed, the benchmark index reached the intra-day high of 157,347. Though some volatility emerged later, the index closed on a strong note at 155,511.57, reflecting a jump of 6,768.25 points, or 4.55%.

KTrade Securities noted that the KSE-100 staged a powerful rebound, closing up 6,768 points and marking a sharp reversal after the recent prolonged weakness. The session opened strong and maintained a firm upward trajectory, with broad-based buying indicating a decisive shift in sentiment.

The rally was largely driven by improving global cues as easing geopolitical tensions lifted the risk appetite. Overnight developments, including conciliatory signals from both the US and Iran, triggered a sharp pullback in international oil prices, while global equities across the US and Asia closed in the green. This external tailwind set the stage for aggressive buying at the local bourse, KTrade remarked.

Heavyweight stocks across commercial bank, cement, fertiliser and E&P sectors drove the index's performance. The latest Consumer Price Index (CPI) reading of 7.3%, coming in below expectations, reinforced investor confidence by supporting the case for a stable monetary policy outlook. The combination of easing inflation and softer oil prices provided a strong base for sentiment recovery, it added.

Arif Habib Limited (AHL) observed that stocks registered a strong surge back above 150k with the KSE-100 gaining 4.55% day-on-day. A total of 91 shares rose while eight fell with United Bank (+6.36%), Lucky Cement (+9.17%) and Fauji Fertiliser (+2.89%) contributing the most to the index gains. "Wednesday's surge is the second biggest move that has come from below 150k since the KSE-100 broke below the Oct 2025 lows, underscoring its attractiveness for long-term capital deployment."

AHL mentioned that China and Pakistan issued a joint call for an immediate ceasefire in the Gulf war and for safeguarding shipments through the Strait of Hormuz. Additionally, US President Trump was scheduled to address the nation, which follows addresses already made by the prime ministers of the UK and Australia. Domestically, the CPI for March rose 7.3% year-on-year and 1.2% month-on-month, which were broadly in line with expectations. AHL anticipated that index levels below the 200-day moving average would remain attractive for long-term accumulation.

Topline Securities wrote that gains of 6,768 points in the KSE-100 index signalled a strong rebound in market sentiment. During the session, the index traded within a wide range, touching the intra-day high of 157,347 and low of 151,263. Trading was briefly halted after the KSE-30 index surged more than 5% from the previous day's close, activating the market-wide circuit breaker.

Overall trading volumes increased to 670.9 million shares against Tuesday's tally of 435 million. The value of traded shares stood at Rs44 billion. Foreign investors sold shares worth Rs170.6 million, the National Clearing Company reported.